1. Cover of this topic.
Definition .
Object.
Order Processing.
Transportation.
Supply Chain Management.
2. Physical Supply
goods moving from supplier to manufacturer
“inbound”
Physical Distribution
goods moving from manufacturer to customers
“outbound”
3.
4. This concerns movement of a finished product/service to
customers.
In physical distribution, the customer is the final
destination of a marketing channel, and the availability of
the product/service is a vital part of each channel
participant’s marketing effort
5. Company may deliver directly to customers
Use other companies or individuals to deliver goods
Intermediaries
wholesalers – agents
transportation companies – warehouses
6. 1. Total Cost Concept
2. Customer Service Concept
a. Time
b. Dependability
c. Communication
d. Convenience
e. Accuracy
7. 3. Distribution Cost-Service trade offs
a. Achieve right balance between them
b. Flexibility is important in balancing the cost
and service
8. a. Verifying Customers’ Credibility
b. Checking for any outstanding payment
c. Monitoring stock level
d. Preparing invoice
e. Arranging transporter
f. Sending the consignment and information
9. i. Suitability or nature of product
ii. Affordability
iii. Availability
iv. Customers’ specifications
v. Competitor’s transportation model
10. Developed in 1980s.
SCM is the process of planning, implementing, and
controlling the operation of the supply chain as possible
The primary objective of supply chain management is to
fulfill customer demand through the most efficient use of
resources
